Sanctions against Russia have a significant impact on the Russian economy
The Canadian government is sending new military supplies to Ukraine and halting all Russian oil imports to Canada, accusing Russian President Vladimir Putin of making a “serious miscalculation” in his decision to invade Ukraine.
The Canadian government is sending about 100 anti-tank weapons to Ukraine as well as 2,000 rockets. This is in addition to the lethal and non-lethal weapons already sent to the country.
Canada would import approximately $550 million worth of crude oil per year from Russia.
Prime Minister Justin Trudeau says economic sanctions against Russia are having an impact.
Trudeau also asked the CRTC to review Russia Today’s presence on Canadian airwaves.
He says a rigorous review process is important, Trudeau says, given the independence of media in Canada, but many big providers are already removing RT “proactively.”
A local investment adviser says Western sanctions against Russia are having a significant impact on the Russian economy.
Larry Short, senior investment adviser at Short Financial, a branch of IA Private Wealth, says that since the imposition of the sanctions, the value of the ruble has fallen to record lows.
This means that the cost of everything Russia imports – from food to electronics – has increased by 25-30%.
Because the ruble has fallen so dramatically, interest rates in Russia have risen.
He says that the Russian Central Bank has raised interest rates to 20%, which means that the average Russian citizen is really suffering.
Short says many credit cards issued by Western banks no longer work. He estimates that the cost of Western sanctions against Russia is around $20 billion a day.
Meanwhile, the continued economic pressure imposed on Russia by the West could have a softening effect, led by Russian oligarchs.
So says Lucian Ashworth, professor of international relations in the department of political science at Memorial University.
He says Russian oligarchs rely on contacts with the West to keep their money out of Russia, which could lead to additional pressure to reach a resolution.
As an example, he cites Ukraine’s invitation to Russian billionaire Roman Abramovich, owner of Chelsea football club, to mediate in talks with Russia.